Technology enabled city (ShutterStock image)

IT, networking, smart lighting buys booming in state and local market

Cross-disciplinary IT services, connectivity and smart lighting are among the top 10 growth areas in government contracting by states, local governments and education.

According to a new report from market researcher Onvia, spending growth in the state and local and education markets is being driven by efficiency, safety, functionality and compliance.  State and local governments are looking for ways to save money and improve service delivery.

Onvia shows that “business enabling” services contracts -- for cloud, cybersecurity and big data products and services -- have grown by 17 percent over the last year, especially among buyers who may “lack the experience and knowledge to be highly specific about the bid language and look to providers for input,” the researcher said. Additionally, because of the complex nature of today’s IT environment, buyers tend to look for expertise in more than one field. Cybersecurity, for example, is expected to be a standard component -- even in non-IT projects.

Bid volume related to connectivity – specifically cabling infrastructure contracts – has grown by 20 percent over the last year. This category includes not just voice, data and network services, but also includes fiber optic products and contracts that are part of larger infrastructure projects such as laying fiber during road or bridge construction. States issued more bids than cities, counties or school districts.

Smart lighting projects were up as well, with requests for proposals and bids growing 15 percent over last year. These projects can help cities reduce energy costs, collect ambient data, support surveillance tools such as cameras or gunshot detectors and communicate wirelessly to city networks.

The size of such projects vary. Detroit is in the middle of a three-year $185 million lighting overhaul. San Diego is replacing 14,000 of its street lights, which is expected to save the city $2.4 million a year, according to an article in Forbes.

Other top industries profiled by Onvia include school bus services, water infrastructure,  disaster planning and recovery, education and medical equipment. 

Onvia’s list is based on current, future and historical government transaction data from its B2G Intelligence System that show opportunities with the most significant rates of growth.

Access "10 Hotspots in Government Contracting" here.

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